New York (CNN) Eggs have become too expensive for Dollar Tree.
dollar tree (LTRD)which sells most products at $1.25 and a small selection of items at $3 or $5, will stop selling eggs in stores because the company cannot make money offering them at fixed prices .
Egg prices have surged, fueled by the shortage caused by the deadly bird flu, high production costs and egg producers increasing their own profits.
The cost of eggs jumped 38% for producers each year in February and 55% for buyers, although eggs are starting to get cheaper. The average price for a dozen large Grade A eggs was $4.21 in February, according to data from the Bureau of Labor Statistics.
Most retailers have raised egg prices for customers to accommodate higher costs, but Dollar Tree doesn’t have as much flexibility to raise prices.
“Our main price at Dollar Tree is $1.25. The cost of eggs is currently very high,” the company spokesperson said. Randy Guiller. Dollar Tree, which has about 9,000 stores in the United States, will bring back eggs when “costs are more in line with historic levels.”
But it probably won’t be in time for a key egg-buying holiday, Easter, which is April 9 this year.
Reuters first reported that Dollar Tree would stop selling eggs. Family Dollar, owned by Dollar Tree, will continue to sell eggs.
Shoppers on tight budgets are increasingly turning to dollar stores for food.
Dollar Tree, Family Dollar and Dollar General, the largest of the three chains, have expanded in recent years and added more food staples, though fresh and healthy options are limited. Dollar stores are the fastest growing food retailers in America, according to a Tufts University study released this year.
Dollar Tree sold cartons of eight or six eggs for $1. In 2021, Dollar Tree announced that it would raise prices to $1.25 because selling everything for $1 was cutting business.
Dollar Tree also made the decision to pull eggs because it has a reduced staffing pattern in stores, said David D’Arezzo, a former executive at Dollar General and other retailers who now works as a consultant for the industry. Workers who change price tags on eggs weekly to account for wild market swings would put additional pressure on store operations, he said.
The chain caters to low- and middle-income customers and doesn’t want to offer shock-priced eggs to hurt its price reputation with shoppers, D’Arezzo said.